Frequently Asked Questions 

The following are some of the most frequently asked questions by those seeking equipment/software lease financing offered by Lease United.

• Is there a limited list of companies that provide the equipment leased through Lease United?
  No. Equipment can be acquired from almost any vendor. You choose the equipment and vendor that is right for your company's needs and come to us to help make paying easier on your budget.
• Can anyone Lease?
  No, Leasing isn't for everyone. Leases arranged by Lease United are for business purpose only. The customer looking for personal or household leasing is not eligible.
• How does a lease differ from a loan?
  There are a number of great reasons to lease vs. loan:

  Loan vs. Lease
  LOAN	LEASE
  A loan requires the end user to invest a down payment in the equipment. The loan finances the remaining amount.	A lease requires no down payment and finances only the value of the equipment expected to be depleted during the lease term. The lessee usually has an option to buy the equipment for its remaining value at the end of the lease.
  A loan usually requires the borrower to pledge other assets for collateral.	The leased equipment itself is usually all that is needed to secure a lease transaction.
  A loan usually requires two expenditures during the first payment period; a down payment at the beginning and a loan payment at the end.	A lease requires only a lease payment at the beginning of the first payment period, which is usually much lower than the down payment.
  The end user bears all the risk of equipment devaluation because of new technology.	The end user transfers all risk of obsolescence to the lessors, as there is no obligation to own equipment at the end of the lease.
  End users may claim a tax deduction for a portion of the loan payment as interest and for depreciation, which is tied to IRS depreciation schedules.	When leases are structured as true leases, the end user may claim the entire lease payment as a tax deduction. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting (equipment financed with a conditional sale lease is treated the same as owned equipment).
  Financial Accounting Standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.	Leased assets are expensed when the lease is an operating lease. Such assets do not appear on the balance sheet, which can improve financial ratios.
  A larger portion of the financial obligation is paid in today's more expensive dollars.	More of the cash flow, especially the option to purchase the equipment, occurs later in the lease term when inflation makes dollars cheaper.

• Can non-equipment items be included?
  Yes. One of the many benefits of leasing includes the ability to group equipment items into one lease. Leases can include software, service and installation costs so you can make one simple monthly payment for an entire system or equipment line. You can even lease software alone.
• What are the approval requirements of Lease United?
  We evaluate your business credit history (including bank and trade references), personal credit history of the owner(s) and value of the equipment. If your credit history has some negative items, we often can approve a lease with a shorter term and/or a down payment.
• Why are personal guarantees requested?
  An important part of our credit decision is based upon the personal credit report of the owner(s). These reports are usually very accurate and reliable, allowing us to provide you with a timely credit decision. We have found that the payment patterns of privately held businesses mirror that of the owner(s).
• What happens after the credit approval?
  Once you are approved, we prepare lease documents and overnight them to you. After you sign and return your lease documents to us, we issue a purchase order for the exact equipment that you have selected. Upon your verification of delivery and acceptance of your equipment, we pay the vendor and your lease begins. Your first payment is usually due about 30 days later.
• How long are the lease terms?
  Most leases are written for 24, 36, 48 or 60 months, depending upon the type of equipment and your needs. Leases for items that depreciate rapidly (such as computers) are usually shorter terms. Expensive, durable machinery can be leased for terms up to 84 months.
• How much equipment can be leased?
  Typical lease amounts range from $5000 and up into the millions. For equipment costing under $5000 it is usually more cost-effective to use other means of financing (i.e. cash flow, credit cards etc.) rather than leasing.
• How are payments made?
  Payments can be structured to meet your needs. Typical payment schedules include the first and last payments made at the time you sign your lease documents, with your first monthly payment due about 30 days after your acceptance of the equipment.
• What are the options at the end of the lease?
  You may purchase the equipment for its purchase option amount, continue to lease, or return the equipment with no further obligation.
• What end-of-term lease purchase options are available?
  We offer the following purchase options to meet your needs:
  1. Fixed Percentage Option
  2. Fair Market Value Option
  3. $1.00 Purchase Option
  The best option for you can be determined after a brief conversation.
• What is the interest rate on a lease?
  Lease rates are based on the term of the lease, the lessee's credit history (both business and personal), and the type of equipment being leased. The stronger and more established your business, the lower your payment should be.
• Who is responsible for taxes?
  The end user/lessee is responsible for all taxes. We are required by law to collect all applicable sales, use and property taxes and remit them to each jurisdiction. Tax types and rates vary by state and locality.
• Who insures the equipment?
  The Lessee is responsible for insuring the equipment against risk of loss including property and casualty coverage and liability. Lessees usually add the equipment to their existing policy.
• Who provides warranty coverage on the equipment?
  Warranty claims are processed in the same way they would be if the Lessee was the owner of the equipment.
• Can the lease be cancelled?
  No, leases are non-cancelable agreements for the specified term that you select at the beginning of the lease. However, we can provide you the options to upgrade, trade-in or buy-out your lease before the end of the term.
• What if my equipment becomes out-dated?
  In the unlikely event that you need to upgrade your equipment during the lease term, we can amend your original lease, assist you with a trade-in of your original equipment, or structure a new lease.
• What information must I provide to qualify?
  For applications up to $150,000 A simple, one-page application completed and faxed, e-mailed or given over the phone. For applications over $150,000 Last two years' fiscal year-end tax returns and/or financial statements.
• Do I need perfect credit?
  Although our best programs are designed for business owners with a good credit history, we understand many credit-worthy applicants may have some credit issues. Our experience and desire to work with our customers has helped us develop advanced programs for many levels of credit strength.
• How long must I be in business to qualify?
  Some of our programs are for "start-up" businesses, thus, there is no time in business requirement. Other programs require a business to be operating for at least two years to be considered an "existing" business.